After the JPEX exchange fraud case represented by Chen Lingjiu, internet celebrity Lin Zuo has been prosecuted, and the Hong Kong police have issued a red notice to target the mastermind.

The virtual asset exchange JPEX has been implicated in fraudulent money laundering and other criminal activities, causing losses of up to HKD 1.6 billion for more than 2,700 victims in Hong Kong. The Hong Kong police announced earlier that they have formally charged 16 individuals involved, including six core executives, seven people related to OTC Trading, several internet celebrities, and three puppet account holders of (. The accused individuals are scheduled to appear in court on Thursday (6th). According to reports from Hong Kong media, the accused also include well-known internet celebrity Lam Tsok and KOL Chan Yi. According to police sources, two masterminds and one key member of the JPEX crime group are still at large, and the police have issued a red notice through Interpol to hunt down those suspected of using investments in virtual assets to deceive investors.

JPEX Involved Persons and Charges

Among the sixteen defendants involved in this case, six are core members of JPEX, who are accused of crimes including conspiracy to commit fraud, money laundering, obstructing justice, and using virtual assets to entice others to invest. The police also accused seven individuals related to Crypto Assets OTC Trading of fraud and money laundering, while three so-called puppet account holders are charged with money laundering.

Lin Zuo's involvement in the JPEX case has attracted attention.

Lin, as a well-known internet celebrity and public figure in Hong Kong, has become a focal point for the police in the JPEX case. He previously held a boxing match in Taiwan, where the venue manager and Toyz also participated. The Hong Kong police conducted a search of Lin's office located in Central on the grounds of “conspiracy to commit fraud” and seized some related evidence. The police speculate that Lin may be involved in the operation, promotion, and flow of funds of JPEX, and are further investigating whether he played an active role in the promotion of the platform. At that time, Lin, as a well-known KOL and internet celebrity, publicly promoted JPEX on social media, attracting a large number of fans and investors to participate in virtual asset trading on the platform. After the JPEX case was exposed, the police discovered that the platform was actually engaged in fraudulent activities, resulting in many investors being unable to withdraw funds, and suffering significant losses.

The mastermind of the JPEX crime syndicate has fled overseas.

The police revealed that some of the suspects had already fled overseas before the police launched the arrest operation. Nevertheless, the police have identified the whereabouts of two masterminds and one key member of the JPEX group and are pursuing these suspects through the International Criminal Police Organization. The police emphasized that this is the first prosecution under Hong Kong's “Anti-Money Laundering and Terrorist Financing Ordinance” Section 53ZRG, which stipulates that if convicted, the involved parties may face a fine of up to HKD 1 million and seven years in prison.

JPEX Victims and Asset Freezing Situation

As of now, the police have received over 2,700 reports from JPEX victims, with losses exceeding 1.6 billion HKD. The police also revealed that 80 people have been arrested so far, including core members of the JPEX crime group and the OTC Trading responsible. The police have frozen assets worth 228 million HKD, which include cash, luxury cars, bank accounts, and gold bars.

The endorsement controversy of Taiwanese artist Chen Lingjiu

During the promotion of the JPEX case, Taiwanese artist Chen Lingjiu served as the spokesperson for the platform and promoted it on social media. Chen Lingjiu's endorsement at that time attracted attention in Taiwan, and although he claimed to be a victim and was not directly involved in fraudulent activities, his role as a celebrity KOL undoubtedly heightened JPEX's credibility and exposure. There is currently no further news on whether Chen Lingjiu will be investigated due to this case.

The Rise and Fall of JPEX

JPEX attracted a large number of investors through various advertisements, social media promotions, and collaborations with influencers. The platform once touted low-risk, high-return investment opportunities, using this as a selling point to attract a large crowd interested in virtual currency. However, in September 2023, after a warning from the Hong Kong Securities and Futures Commission, JPEX suddenly raised the withdrawal fees for virtual currency significantly, leading to many customers being unable to withdraw funds. This ultimately exposed the platform's suspected activities of fund diversion and money laundering of virtual assets. The Hong Kong police are still actively investigating the JPEX case, tracing the relevant masterminds and the flow of illicit funds. Due to the large scale of the case, the police stated that they would continue to conduct more in-depth investigations and prosecutions.

The recent JPEX case is not only a significant incident of virtual asset fraud but has also sparked widespread discussion about the safety and regulation of Crypto Assets investments, reminding investors to remain vigilant and carefully choose platforms when engaging in virtual asset trading.

This article discusses the follow-up to the JPEX exchange scam case endorsed by Chen Lingjiu, with internet celebrity Lin Zuo being prosecuted and Hong Kong police issuing a red notice to target the mastermind, first reported by Chain News ABMedia.